United States
Environmental Protection
Agency
Office of Air Quality EPA/451/K-98/002
Planning and Standards February 1998
Research Triangle Park, NC 27711 http://www.epa.gov
Air Pollution Operating
Permit Program Update
Key Features and Benefits
Operating Permit
Printed on paper that contains at least
20 percent postconsumer fiber.
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United States Office of Air Quality EPA/451/K-98/002
Environmental Protection Planning and Standards February 1998
Agency Research Triangle Park, NC 27711 http://www.epa.gov
&EPA Air Pollution Operating
Permit Program Update
Key Features and Benefits
X Printed on paper that contains at least
y 20 percent postconsumer fiber.
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What Is the Operating Permit Program?
Each year in the United States, industrial
operations emit nearly 100 million tons
of pollutants into the air. These include
pollutants that make breathing difficult, form
urban smog, impair visibility, and attack ecosys-
tems. Some of these pollutants also cause cancer
or other serious health effects. Among the many
pollutants emitted into the air each year are
sulfur dioxide, nitrogen dioxides, carbon monox-
ide, benzene, mercury, and dioxin. Many of the
sources of this air pollution are large facilities,
such as petroleum refineries and chemical plants,
that can have literally thousands of potential
emission points. Finding common-sense solutions
to reduce this air pollution is a constant challenge
to local communities and federal, state, and tribal
governments.
In 1990, Congress established one such innovative
program under Title V of the Clean Air Act
Amendments. The operating permit program
streamlines the way federal, state, tribal, and local
authorities regulate air pollution by consolidating
all air pollution control requirements into a single,
comprehensive "operating permit" that covers all
aspects of a source's year-to-year air pollution
activities. The program is designed to make it
easier for sources to understand and comply with
control requirements, and results in improved air
quality. Over the past several years, EPA worked
with state and local governments to establish
operating permit programs in every state, includ-
ing 60 local programs, as well as programs in the
District of Columbia and other territories. EPA,
working with industry, state and local govern-
ments, and others, also initiated efforts to
streamline and substantially simplify the permit
program requirements, which resulted in in-
creased flexibility to industry and states. Through
these efforts, state and local agencies have
already issued thousands of permits nationwide.
Why Is the Program Necessary?
Congress created the operating permit
program to ensure better compliance
and to allow for more thorough air
pollution control. Prior to 1990, the federal
Clean Air Act required permits only for new
construction. It required that states issue air
pollution permits to businesses that build new
pollution sources or modify existing pollution
sources. In creating these permit programs-
known as "preconstruction" or "new source
review" permit programssome states also
chose to establish enhanced programs for regulat-
ing air pollution emissions from sources already
in operation. These "operating permit programs,"
though not uniform in requirements or other
characteristics, proved to be effective tools for air
pollution control. With Title V of the 1990 Clean
Air Act Amendments, Congress adopted measures
that require all states to develop and implement
operating permit programs. In doing so,
Congress hoped to eliminate any potential
confusion associated with the various air pollution
emission reduction programs
required by the federal Clean
Air Act and different state
and local regulations.
Under Title V, EPA must
establish minimum elements
to be included in all state and
local operating permit pro-
grams, and then assist the state
and local governments in
developing their programs.
EPA modeled its air pollution
operating permit program
after pre-existing state and
local operating permit programs and after a
similar program which has proven successful
The operating
permit program
is an innovative
national permitting
system that
streamlines the
regulation of
air emissions.
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under the Clean Water Act for permitting the
discharge of water pollutants. EPA officially
launched the operating permit effort in 1992
with regulations for implementing such programs.
The goals of the permit program include:
Develop a comprehensive permit system that
identifies and implements the Clean Air Act
requirements for air pollution sources.
Provide an opportunity for citizens to be
involved in the permit review process.
Improve compliance with emissions control
requirements.
The operating permit program is meeting these
goals and is achieving enhanced compliance with
air pollution requirements for industrial and
commercial sources. Nationally, an estimated
22,000 sources of air pollution are required to
obtain permits under operating permit programs
administered by 113 state, territory, and local
permitting authorities.
How Does the Program Work?
The Clean Air Act requires all states to
develop and implement an operating
permit program that meets minimum
federal requirements. Most of the significant air
pollution sources throughout the country must
obtain a permit from their respective state, tribal,
or local permitting authority.
All "major" stationary sources (primarily indus-
trial facilities and large commercial operations)
emitting certain air pollutants are required to
obtain operating permits. Whether a source
meets the definition of
"major" depends on the type
and amount of air pollutants it
emits and, to some degree,
on the overall air quality in
its vicinity. Generally, major
sources include those station-
ary facilities that emit
100 tons or more per year
of a regulated air pollutant.
Regulated pollutants include
compounds such as carbon
monoxide, particulates,
volatile organics, sulfur dioxide, and nitrogen
oxides. Smaller sources are considered "major"
in areas that are not meeting the national air
quality standards for a particular pollutant. For
example, certain sources releasing 25 or even
Each state and
local government
can tailor its permit
program to its
individual needs,
while meeting
minimum federal
requirements.
10 tons of pollutant emissions per year are
considered "major" in areas with extreme
ozone (urban smog) problems.
The operating permit program also covers a
variety of other significant operations, including:
Large coal-burning utility boilers and indus-
trial boilers subject to control requirements
under the acid rain provisions of the Clean
Air Act.
Sources that are subject to requirements
under New Source Performance Standards
and National Emission Standards for Hazard-
ous Air Pollutants.
Sources of toxic air pollutants (i.e., any
source that emits more than 10 tons per year
of an individual toxic air pollutant or more
than 25 tons per year of any combination of
toxic air pollutants).
Sources required to have pre-construction
or new source permits (under New Source
Review or Prevention of Significant Deterio-
ration requirements).
Often these facilities can be very large with a
wide variety of process operations and hundreds
of emission sources. Examples include chemical
plants, petroleum refineries, and large manufac-
turing facilities.
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The operating permit program coven most significant sources of air pollution in the United States. The more complex sources,
such as large petroleum refineries and chemical production plants, can have hundreds or even thousands of emission points.
Photo: S.C. Ddmey/EPA
Other key provisions of the operating permit
program are as follows:
Sources are required to provide emissions
reports to their permitting authorities at least
semiannually and must certify their compli-
ance status annually.
Sources must periodically renew their
operating permit, generally every 5 years.
To fund their programs, permitting authori-
ties are required to collect permit fees from
sources subject to the operating permit
program. Fees are most frequently based
on the amount of air pollutants that a source
may emit.
Public notification and opportunity for
comment must be provided during the
permit review process for every new permit and
when permits are renewed or significantly revised.
EPA is responsible for overseeing the implementa-
tion of permit programs and may object to a permit
that fails to comply with program requirements.
EPA is also required to establish a federal permit
program in any area where the permitting authority
fails to develop and maintain an adequate program
of its own.
It is also important to note that state and local govern-
ments can and do implement separate requirements
that are appropriate for their unique local conditions.
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The operating permit program is a dy-
namic program that offers significant
benefits for the public, state and local
governments, and industry.
The Public
Members of the public benefit from improved
air quality, increased access to information about
pollution control equipment, and enhanced
opportunities for active participation in the
permitting process:
While developing permit applications for the
operating permit program, a number of
companies discovered control requirements
of which they were unaware and subsequently
took steps to comply with these requirements.
Improved air quality is expected to result
from improved compliance with emissions
requirements.
Permits and compliance monitoring records
are available for public review.
Before a permit is issued, renewed, or
significantly revised, the public is provided an
opportunity for review and input during a
notification and comment period, which may
include a public hearing.
State and Local Governments
State and local governments benefit from the
operating permit program in several ways:
The operating permit program provides a
uniform and efficient mechanism that state
and local agencies can use to consolidate and
administer provisions of the Clean Air Act,
as well as their own laws.
The program provides all state and local
permitting agencies with the authority to
sustain their operations using direct permit
fees, rather than general tax revenues.
Improved industrial compliance with emission
standards is expected to help state and local
governments meet the national ambient
air quality standards and possibly even
avoid additional local emission controls.
Industry
Industrial facilities subject to the operating
permit program also enjoy a number of
important benefits:
The permitting process resolves questions
about what state, local, or federal require-
ments apply at a given emission point,
enables industrial facilities to understand fully
their compliance obligations, and assures that
issued permits cover all applicable Clean Air
Act requirements.
The program reduces the waste and confu-
sion inherent in redundant and/or contradic-
tory requirements issued by state, local, and
federal authorities. The operating permit
consolidates multiple permit requirements
into a single document to minimize duplica-
tive requirements.
The operating permit program can make it
easier to incorporate flexible approaches to
operations and to foster use of market-based
emissions trading programs as a compliance
tool. This reduces the burden of time-
consuming permit amendments for facilities
needing to make changes quickly or wishing
to make emissions allowance trades.
The operating permit program provides many opportunities for public
input during the permitting process.
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How Is the Program D
s
ince the official launch of the operating
permit program in 1992, substantial
progress exists on many fronts:
EPA has approved permit programs for all
113 state, territorial, and local permitting
authorities in the nation. EPA is also working
with tribal governments to develop tribal
permit programs. In the next few years, EPA
expects several tribes to submit program
plans for approval.
As of January 1998, state and local
permitting authorities received nearly
14,000 applications for operating permits-
representing more than 60 percent of the
estimated 22,000 sources subject to the
program nationwide.
State and local permitting authorities have
issued nearly 3,000 Title V operating permits
and hundreds of draft permits.
Several thousand companies that would
otherwise qualify as "major" sources have
agreed to comply with air pollution emissions
limits to maintain operations below levels that
would trigger the operating permit program
requirements. Some of these companies
downsized and re-engineered their opera-
tions to reduce their emissions levels.
How Is EPA Improving the Program
EPA, state, and local authorities continue to
work closely with industry to improve the
operating permit program. EPA is commit-
ted to achieving the following:
Simplify the permit application process and
permit content requirements.
Streamline permit revision requirements.
Increase the operational flexibility available to
regulated businesses via flexible, facility-wide
permitting.
Simplify Permit Applications
and Content
Soon after the state and local permitting authori-
ties began to implement their operating permit
programs, EPA found that many of the first
permit applications filed by industry were far
more complex than intended. To address this
problem, EPA worked with industry and state and
local officials to develop two guidance documents
that clarify the scope and intent of the operating
permit program:
The first document outlined minimum federal
requirements governing the permitting
process. It streamlined the permitting process
and enabled permitting authorities to quickly
implement adjustments that reduced the
complexity and cost of permit applications.
A second document provided guidance
on ways to reconcile and eliminate redun-
dant and conflicting permit
requirements. This helped
clarify which permit
requirements applied to
a given facility. It also
reduced industry's burden
of documentation and
reporting without reducing
the level of environmental
protection attained.
Both guidance documents
are available on the World
Wide Web at the address provided on page 6.
The permit
program reduces
industry's reporting
burden without
reducing
environmental
protection.
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Streamline Permit Revisions
No matter how well designed a permit might
be, the potential always remains for unexpected
operational changes within the permitted facility
that might, for example, increase the facility's
regulated emissions beyond its permitted allow-
ances, or add new units that are not covered in
the permit. In streamlining the permit revisions
process, EPA's goals are to minimize the costs
and administrative delays associated with permit
revisions and to create incentives favoring pollu-
tion prevention techniques over source control.
EPA expects to issue final procedures for permit
revisions in 1998. These procedures will continue
to provide for appropriate public review of
permit changes without placing an unnecessary
burden on a permittee.
Flexible, Facility-Wide Permitting
One company
estimates that the
added operational
flexibility of its
pilot permit can
help save up to
$1 million a day.
Flexible, facility-wide
permitting represents the
frontline of innovation in
the operating permit
program. The concept
involves developing
permits that allow
certain classes of pre-
approved operational
changes to occur without
further regulatory review,
provided that:
Emissions from the facility do not exceed those
allowed by a total emissions cap.
The facility uses pre-approved pollution
prevention technologies to reduce emissions
when possible.
Under flexible, facility-wide permitting, compa-
nies benefit from enhanced operational au-
tonomy and competitiveness; state and local
permitting authorities benefit from reduced
auditing and paperwork requirements; and the
public benefits from cleaner air.
To develop the flexible, facility-wide permitting
concept, EPA initiated the pollution prevention
permitting pilot (P4) program. Based on the
success of the first pilot permit issued to a com-
puter chip manufacturing facility, other companies
are participating in the pilot program. It promises
to significantly enhance the efficiency and effective-
ness of the operating permit program.
A Commitment to Continuous
Improvement
The success of the operating permit program must
finally be measured in terms of improved compli-
ance with air pollution regulations and, ultimately,
improved air quality. EPA is committed to continue
working with state, tribal, and local governments
and with industries to implement innovative
advancements that will help industries meet their
requirements as efficiently and flexibly as possible.
For More Information
For more information about the operating permit program, visit the EPA Web site at
http://www.epa.gov/oar/oaqps/permits or contact your state or local air pollution control agency.
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